Germantown facing budget woes; could lead to property tax hike

Germantown is facing budget issues that already have caused a freeze on certain spending in the current fiscal year and could lead to a property tax increase in June.

City Administrator Patrick Lawton said Wednesday it would be "irresponsible" to discuss a specific amount of the tax hike, including a claim by Kristen Geiger — the suburb's former financial and general services division director forced to resign Friday — that she had warned Lawton the increase could reach 90 cents over the current property tax rate of $1.485 per $100 of assessed value.

"Will we have some form of revenue enhancement in FY14? More than likely," Lawton said. "What level it is going to be, I don't know yet.

" ... We will work with the (Financial Advisory Commission) to make it is as austere as possible before we suggest anything."

Lawton said the lack of information regarding the budget situation was one of the reasons he sought Geiger's resignation — a resignation she submitted under protest. Geiger mentioned in her resignation letter that she warned the city of "a potential tax increase of 90 plus cents" last October.

"I expressly counseled you in October 2012 (and since that time) that the City needed to be taking more fiscally responsible measures," Geiger wrote in her resignation letter to Lawton. "I plainly stated that the City needed to cut costs beginning at that time. You ignored that warning and advice."

Lawton acknowledged several factors in revenues and expenditures are adversely impacting the current fiscal year budget. Sales tax revenues are trending under projections, and property tax appeals "have eroded the tax base," resulting in those revenues being less than expected, Lawton said. Additionally, there was a miscalculation in the budgeted cost of retiree benefits.

The city administrator said Mayor Sharon Goldsworthy's administration is deferring some capital projects to try to curb the impact. Lawton already directed department heads to eliminate discretionary spending such as trips, conferences (unless the cost was paid in advance) and other expenditures unless there already is a purchase order issued.

Department heads had submitted their budgets for FY14, but Lawton has returned those for further cuts because of the budget concerns.

In her letter, Geiger, who has not returned several calls, countered Lawton's claim that he was "blindsided" by the budget issues, saying she warned him, and that he chose not to tell the Board of Mayor and Aldermen. "Yet, in February 2013, you now express surprise as if this data is new to you and the BMA," she wrote.

Geiger added that the decision to terminate her was "a transparent attempt to improperly cast blame."

"It is with regret that I witness an effort to sully my professional reputation to disguise City Administration's refusal and failure to timely and properly address fiscal matters," Geiger wrote.